Brexit LIVE: May facing ANOTHER DEFEAT in Commons as ERG DEMAND pledge on 'no deal'

BREXIT rebels are threatening to inflict another damaging defeat on Prime Minister Theresa May tomorrow over a motion tabled in her name which they claim would commit her to avoiding EU withdrawal without a deal.

The motion asks the House to reiterate its support for the approach agreed on January 29, when the Commons backed an amendment authorising Mrs May to go back to Brussels to renegotiate the controversial Irish backstop. But members of the backbench European Research Group (ERG) say that it effectively endorses another amendment approved by MPs the same day, which rules out no-deal but is not binding on the Government. Leading ERG member Mark Francois told the BBC: "We cannot vote for this as it is currently configured because it rules out no-deal and removes our negotiating leverage in Brussels."

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His words reflect the anger which erupted overnight over claims Prime Minister Theresa May was plotting to keep Britain locked in a permanent backstop with the EU.

It comes after Theresa May’s Brexit negotiator Olly Robbins was overheard saying the original plan for the Irish backstop was designed to be a “bridge” to the long-term trading relationship with the UK and EU rather than a “safety net”.

Brexiteer Andrew Bridgen reacted with fury saying Britain “will be no more than a colony of the EU” after Brexit.

He said the remarks proved Mrs May was planning to keep the UK in the customs union as a long term ambition for the UK’s trading relationship with Brussels.

The Tory MP posted on Twitter “It’s clear that the much hated backstop is in fact the end state relationship that the PM has in mind for the UK with the EU.

“If the PM succeeds, our country will be no more than a colony of the EU in perpetuity. This is a betrayal of our country, our democracy and our people.”

The outrage comes after an ITV reporter said he overheard Mr Robbins in a hotel bar in Brussels openly discussing how fear of keeping the UK in the EU well after March 29 might focus minds when the agreement goes back to the Commons.

Hewas alleged to have said: “The big clash all along is the ‘safety net’.

Dutch PM Mark Rutte declared Britain will not enjoy a “splendid isolation” as he urged Europe to learn from the lessons of Brexit while delivering the annual Churchill speech in Switzerland.

The Dutch Prime Minister warned European Union countries that they should learn “the chaos of Brexit” while delivering the speech at the University of Zurich.

He also used the ‘future of Europe’ lecture to insist that Britain will not be able to cherry-pick from EU’s single market in the future.

The speech was born out of an address given by Winston Churchill in September 1946, in which the British wartime prime minister called for a “United States of Europe” as a remedy to the Continent’s post-war plight.

8.02pm update: "Still no clarity," complains Sturgeon

Ms Sturgeon said: ”It is expected that the availability and the price of food and drink are likely to be significantly affected, with a disproportionate impact on the most vulnerable in our society."

She added: "With less than 50 days to go until Brexit, there is still no clarity whatsoever about the future relationship with the EU.

"We will continue to call on the UK Government to immediately rule out the possibility of a 'no-deal' Brexit and extend the Article 50 process.

"However, as a responsible government we will also continue, and indeed intensify, our work to prepare for all outcomes as best we can."

Scottish First Minister Nicola Sturgeon (Image: GETTY)

7.56pm update: Sturgeon claims no-deal Brexit would hit food supplies

Scotland's First Minister Nicola Sturgeon has claimed a no-deal Brexit "disaster" could damage supplies of food and vital medicines, as she confirmed the Scottish Government was to "intensify" contingency plans ahead of the UK's departure from the European Union.

The UK is due to quit the EU in just over six weeks' time, on March 29 - with the Scottish First Minister warning if no agreement is in place by then "the availability and the price of food and drink are likely to be significantly affected".

This would have the greatest impact on the most vulnerable Scots, she added, as she repeated calls for Theresa May to immediately rule out leaving without a deal in place.

Ms Sturgeon spoke after the Scottish cabinet and the Scottish Government's Resilience Committee met in Glasgow to discuss Brexit preparations.

7.38pm update: New company "had no proven track record", says Kelly

Commons' Public Accounts Committee chair Meg Hilliar asked Ms Kelly if there was "any paperwork" to show that the financial backing existed.

Ms Kelly replied: "We certainly, during the course of December, did have evidence that confirmed that they were a backer."

She added that Arklow Shipping had "presented evidence to Seaborne".

Pressed on when the department first received a letter direct from Arklow Shipping, Ms Kelly said a "formal letter" was sent to Transport Secretary Chris Grayling on January 15.

Ms Kelly acknowledged that Seaborne was a "start-up without a proven track record", but insisted it was a "known quantity in the industry".

Civil servants should not be blamed when "awful things" go wrong because of , a former Whitehall boss has urged.

Mandarins want to say "Yes, Minister" but the scale and complexity of the "colossal task" faced is beyond any bureaucracy, peers heard at Westminster.

Former civil service head Lord Wilson of Dinton called for any criticism or concerns to be focused at the political level "where people can defend themselves".

The independent crossbencher made the plea again as peers debated the UK's divorce talks with Brussels.

6.42pm update: EU Markets regulator calls for "rapid" response powers

The European Union's markets regulator urged lawmakers on Wednesday to give it "rapid" response powers to deal with problems that may arise after Brexit.

The European Parliament has proposed that ESMA should have powers to issue "no action letters" that tell firms they will not face sanctions if they do not comply with a rule or deadline after Britain leaves the EU.

Such letters are used by US regulators, and would avoid the EU having to make time-consuming legislative changes if temporary problems with rules crop up.

After Brexit, the EU will have a large, liquid and interconnected capital market next door which is no longer subject to the bloc's rules, Steven Maijoor, chair of the European Securities and Markets Authority, said.

He told an industry event in Dublin: "This creates the need to have tools to react rapidly to new developments."

European Council President Donald Tusk has sought to turn up the heat on Theresa May by saying the EU was still waiting for “realistic” Brexit proposals from London.

Mr Tusk, who ruffled feathers recently with his comments about a special place in hell” for Brexiteers, tweeted: “No news is not always good news.

“EU27 still waiting for concrete, realistic proposals from London on how to break #Brexit impasse.”

Donald Tusk's tweet (Image: Twitter)

6.02pm update: ERG "will not support May's Brexit motion tomorrow"

The European Research Group will refuse to support Theresa May’s Brexit motion tomorrow after the Government refused to amend it according to their suggestions, BBC Political Editor Laura Kuennsberg has said.

The symbolic vote asks the House to reiterate its support for the approach agreed on January 29, when the Commons backed an amendment authorising Mrs May to go back to Brussels to renegotiate the controversial Irish backstop.

But Ms Kuennsberg tweeted: “Hear ERG told Chief Whip this afternoon they wouldn't back govt tmrw unless motion changed, govt refused - Brexiteer group haven't decided yet if they will abstain or vote against but they won't back govt - either way, another reminder May just can't rely on her backbenches.”

5.46pm update: Negotiations "at a crucial point", says Lord Callanan

Opening a debate on ongoing Brexit talks with the EU ahead of further key votes in the Commons tomorrow, Brexit minister Lord Callanan said it was reasonable to ask for legally binding changes to the deal to reflect the "temporary nature" of the Northern Ireland backstop.

Lord Callanan said the Government was at a crucial point in the negotiations and was engaging with all sides to help deliver a deal, which MPs could back.

He said ministers were confident all the necessary legislation could be passed by Parliament before March 29 and promised a greater say for MPs and peers in developing the mandate for the next phase of negotiations.

But Lord Newby, Liberal Democrat leader in the Lords, branded the Government's approach "irresponsible" and warned the true economic costs of Brexit were now beginning to emerge with investment down and "anaemic" growth.

Lord Newby said: "We will continue to seek an end to the purgatory of the Brexit crisis by giving people the chance to retain the strength and stability of our EU membership via a people's vote."

5.44pm update: Lords push for another “meaningful vote” on Brexit

The Prime Minister has come under opposition pressure in the Lords to give MPs a further "meaningful vote" on her Brexit deal before the end of the month.

Labour's leader in the Lords, Baroness Smith of Basildon, urged the Government to "stop dragging its feet, commit to asking for more time, and rule out the most disastrous of all outcomes - a no-deal Brexit".

Accusing Mrs May of trying to "run down the clock" and force a decision between her deal and no-deal, Lady Smith told peers: "It is only by securing a binding vote for MPs that they can apply the brakes before we career over a cliff-edge."

Labour, she said, wanted to rule out the "catastrophe of crashing out" on March 29 and ensure sufficient time for proper consideration of the legislation needed to deliver Brexit.

5.33pm update: No-deal "would present real challenges"

Ms Kenny added: “Failure to come to an agreement will undoubtedly cause unnecessary delays at our ports and to the complex pan-European supply chains we have built together.

“But also, and this often gets missed, no-deal will present real challenges for our maritime services industry, and to the people we depend on to keep our maritime sector running, such as our seafarers.

“Maintaining a mutually beneficial trade relationship between the EU and UK, who will remain amongst the largest trading partners on earth, is critical.

“Leaving the EU on the 29th does not have to mean uncertainty or gloom, but leaving without a deal, and the considerable uncertainty that would entail, will mean a divorce that will be incredibly harmful to the whole UK maritime sector and the wider economy it serves.

5.31pm update: “Get the deal done,” urges shipping body

The time for playing games over Brexit is over, chairwoman of shipping body Sarah Kenny Maritime UK has warned.

Ms Kenny said: “We are now hearing that the meaningful vote could be pushed back to 27th February. Whilst efforts to secure an agreeable deal to all are commendable, the maritime sector (and indeed all businesses and industries!) need certainty in order to plan accordingly. Certainty that I fear may come too late to act.

“The time for political games is well and truly over. Our maritime sector, the facilitator of 95 percent of UK trade, needs politicians to direct their energy to delivering a deal that will allow all our people to look beyond Brexit.

“There’s so much we need to be getting on with, let’s get Brexit sorted. Get the deal done!"

It claimed net migration to the UK could increase by more than 100,000 under the Government's proposed new immigration system.

On Wednesday, the organisation - which describes itself as an "independent and non-political think tank" - said: "We have decided to withdraw the paper issued today on post-Brexit migration levels.

"There was an error in the calculations which was unfortunately overlooked at the final stages of preparation. We apologise for the error and will rectify it in the course of producing a revised version."

The statement did not give details of which figures are affected by the error.

The Home Office had earlier contested the report's claims, describing them as "inaccurate and untrue".

Dutch Prime Minister Mark Rutte has insisted the Government cannot ditch the backstop arrangement for the Irish border in an interview in which he referred to England, rather than Britain.

Mr Rutte told journalists during a visit to Switzerland: "Both sides are working incredibly hard to see if we can get the withdrawal agreement and the declaration on the future relations through British parliament

"The discussion is all about the Irish backstop.

"The backstop is not there because Europe wants it, or because Britain wants it, it's there because both sides want to prevent a hard border in Ireland.

"If at the same time, England refuses to think about engagement in a customs union, then there is no alternative to the backstop. That's where the discussion is stuck at the moment."

England is one of four countries which make up the United Kingdom, along with Scotland, Wales and Northern Ireland, and it is the UK which is currently a member of the EU.

Brexit negotiations have hit an impasse over the solution to avoid a hard Irish border. But could the problem be solved by looking at the hard border between the Scandinavian neighbours Norway and Sweden?

The Brexit backstop has become one of the most contentious elements of the Brexit negotiations, and has forced discussion into a political deadlock.

In theory, the backstop is a simple basic principle, but no one is able to agree precisely how it will work.

The backstop is meant to ensure no matter what happens with the rest of the negotiations, there won’t be a hard border between Northern Ireland and the Republic.

Sir Keir Starmer speaks in the Commons (Image: Parliament TV)

3.45pm update: Starmer gives May 13 days to submit deal

Sir Keir later added: “We set out the Labour Party position, which is the two options of on the one hand a close economic relationship, on the other a public vote.

"Obviously, the question of the red lines came up, because unless the red lines change it's very difficult to make progress. It was against the backdrop of the Prime Minister running down the clock.

"We've agreed to meet again to continue the discussions, so that'll happen in the coming days or weeks."

Asked when Labour would consider making a second referendum its preferred option if it made no headway with the Government on a customs union, Sir Keir said: "At the moment, the battle this week is to stop the Prime Minister running down the clock and put a hard stop into the process.

"Our amendment says there should be a hard stop on February 26. The Prime Minister must either put up her deal or allow Parliament to take control."

3.43pm update: Labour pushes Government on red lines during "frank and serious" discussions

Labour pressed the government to change its "red lines" on Brexit on Wednesday during "frank and serious" talks with ministers, a party spokesman said.

Prime Minister Theresa May and her ministers are trying to persuade not only their governing Conservative Party to back her deal to leave the European Union, but are also holding talks with Labour to see whether they can find common ground.

International Trade secretary Liam Fox has claimed talks to replicate EU trade agreements afterBrexit will "go down to the wire", amid concerns over a lack of progress.

Speaking in Parliament, Dr Fox added the best way to ensure agreements are rolled over is to secure a deal with the EU, signalling deals signed with Switzerland, Chile and the Faroe Islands, along with an economic partnership agreement with Eastern and Southern Africa.

He added: "We have also signed mutual recognition agreements with Australia and New Zealand, and will be closing two with the United States soon.

"A number of negotiations are at an advanced stage.

"As with all international negotiations, and indeed any negotiations, they will go down to the wire and I would expect nothing different on these agreements.

"That's the way that countries do business."

2.58pm update: Nigel Farage takes his Brexit Party one step further

He posted on Twitter: "The UK’s Brexit negotiator is talking about a long delay to Article 50. The establishment are betraying Brexit.

"I am now sitting as an MEP for The Brexit Party in the European Parliament."

Xavier Bettel said: "It is not possible to find a better result. The priority is to protect the integrity of the EU internal market and minimise the effects of Brexit for citizens."

2.45pm update: Brexit deal must be fair and work in practice - Merkel

The German Chancellor said she would do everything she could to achieve an orderly Brexit before the March 29 deadline.

With just weeks before Britain is due to leave the EU, Mrs Merkel told reporters at a news conference with Luxembourg Prime Minister Xavier: "We agree that we must do everything to achieve an orderly Brexit.

"It is about providing as much security as possible and we both feel a duty to do everything for a deal but it must be a fair agreement that works in practice and we have some work ahead."

Brexit latest: Merkel argues Brexit deal must be fair and work in practice (Image: EPA)

Eurosceptic Tories are threatening to rebel in a key Brexit vote on Thursday over a motion tabled in the Prime Minister's name which they claim would commit her to avoiding EU withdrawal without a deal.

The motion asks the House to reiterate its support for the approach agreed on January 29, when the Commons backed an amendment authorising Mrs May to go back to Brussels to renegotiate the controversial Irish backstop.

But members of the backbench European Research Group say that it effectively endorses another amendment ruling out no-deal, which was approved by MPs the same day but is not binding on the Government.

Pressed on the issue at a Westminster media briefing, Mrs May's official spokesman told reporters: "What the motion reflects is the position the Prime Minister set out after those votes, which is the Parliament wants the UK to leave with a deal, but in order to do so it requires us to secure legally-binding changes in relation to the backstop.

"No-deal is an eventuality we wish to avoid, but one we continue to plan for. Does no-deal remain on the table? The answer is yes."

2.24pm update: SHOCK business warning over Brexit

A trade association has warned haulage firms could go out of business "overnight" because of a lack of permits which may be needed in the event of a no-deal Brexit.

Applications were made for 11,392 of the licences to enter the EU, with 984 made available.

Richard Burnett, chief executive of the Road Haulage Association, said the companies that had missed out were "really angry".

He said: "If you can't go to Europe and your business is based on going to Europe, you're out of business overnight.

"What have you got to fall back on?"

The Department for Transport (DfT), which is responsible for distributing the European Conference of Ministers of Transport (ECMT) permits, said it had secured additional annual and short-term versions.

2.11pm update: Liam Fox responds to trade concerns

The International Trade Secretary replied to an urgent question on replicating EU trade agreements.

Speaking about the reasons countries may not want to continue deals, he said: "Some countries have said they didn't like, for example, some of the human rights elements that were incorporated by the European Union and they would like us to drop those in order to roll the agreements over.

"I'm not inclined to do so because the value we attach to human rights is an important part of who we are as a country."

1.38pm update: Britain and Ireland should build on links

Irish President Michael D Higgins called for Britain and Ireland to build on their links "irrespective of whatever happens in proximate political events".

Speaking at the Liverpool Irish Centre on Wednesday, he said: "Irrespective of whatever happens in proximate political events it's so important that we build on those important links of interaction we have."

Liam Fox is scrambling to sign trade deals around the world after a leaked list revealed just six out of 40 will be done in time for the moment Britain unshackles itself from the EU.

Theresa May’s Tory Government has pledged 40 existing free trade deals with 70 different countries will still apply under a no deal Brexit. But a leaked document suggests that, in fact, just six will be ready in time for Brexit Day on March 29.

Switzerland will introduce a quota system allowing Britons to come and work in the country in the event Britain leaves the EU without a deal.

Under the system 3,500 British citizens coming to Switzerland for the first time will be allowed to work, according to the Bern government. The cap for residence permits will be set at 2,100, with an additional 1,400 short-stay permits allowed.

The quota, which will apply from March 30 to December 31, is intended to replace the current Agreement of Free Movement of Persons between Switzerland and Britain which runs out on March 30.

10.42am update: Brexit Secretary declines to rule out no deal Brexit

Stephen Barclay rejected suggestions that the Government has ruled out a no-deal Brexit.

It comes after senior negotiator Olly Robbins was reported to have been overheard in a Brussels bar saying Mrs May planned to wait until the end of March before confronting MPs with a choice between her deal or a lengthy delay to Brexit.

But Mr Barclay insisted that it remained "the agreed position of the Cabinet" to work to secure a favourable deal but plan for the possibility of no-deal.

Brexit latest: Corbyn took part in a fiery PMQs debate (Image: GETTY )

10.14am update: Option of second vote remains on table for Labour - Starmer

But shadow Brexit secretary Sir Keir Starmer declined to comment on reports a reference to a referendum was removed by the leader's office from Jeremy Corbyn's letter to Mrs May.

Sir Keir told BBC Radio 4's Today programme: "In reality, for the Labour Party, the only credible options now left are a close economic relationship - that's the sort of relationship we

"The letter set out the close economic relationship in detail, it was credible, it's been well received in the UK and the EU.

"We made absolutely clear the next day - I said so, Jeremy Corbyn sent an email to all members - that a public vote is an option still on the table."

9.56am update: Tory and Labour ministers to meet over Brexit

Labour's Keir Starmer and Conservative MP David Lidington will meet this afternoon.

BBC political editor Laura Kuenssberg tweeted: "1. Lidington and Starmer meeting now confirmed for early afternoon - arguably first time 2 parties really engaging on detail and stumbling blocks - still seems to me they're both trying to scope each other out on how serious they are about finding common ground.

"No 10 have already made clear they'll make concessions on workers' protections inc new law if needs be, but (as ever) customs relations are where fundamental clash is and hard to see how PM moves to accommodate them without tearing up policy she just doesn't want to."

Mary Lou McDonald warned that the Irish people would not take a no-deal Brexit "on the chin" and "absorb all the damage" it could entail.

She called for a referendum on Irish unity, telling Today: "Brexit threatens to sunder the entire constitutional and political framework that accommodates the current stability and beds down the peace process."

Ms McDonald said a no-deal outcome would be a "disaster", adding: "If there is a crash, do not imagine for a second that people on the island of Ireland will simply take that on the chin and absorb all of the damage that will entail."

"I think that makes sense, but at the same time if you watch talk shows on TV in Germany, you see members of big businesses and business federations who do urge the Commission to make concessions and find a solution.

"Everyone knows that both sides would be hit quite severely by a hard Brexit."

Professor Felbermayr said German companies were already "suffering" because of uncertainty ahead of Brexit.

He added: "I think the EU should, as a quick-fix at least, offer to remove both the backstop and the Withdrawal Agreement's current time-limit on the mobility of goods and capital, so that the provisional agreement would keep the EU and the UK in a joint customs territory association even after 2020, without making a difference between Northern Ireland and the rest of the UK."

8.26am update: Franco-German fighter jet is doomed without Britain

A Brexit no deal would doom the prospects for a Franco-German next-generation fighter jet with a rival project in Britain.

the head of Airbus Defence and Space told the Handelsblatt German newspaper.

Dirk Hoke, head of Airbus Defence and Space, he considered it "absolutely imperative" that the EU reach an agreement with Britain on security, defence and space given the closely interwoven ties between Europe and Britain.

He told Handelsblatt German newspaper: "I consider it extremely dangerous to develop a system like the Franco-German fighter programme without the British," he said, noting that potential order quantities would rise if Britain participated, making future aircraft more competitive.

France and Germany this month awarded a £57million, two-year contract financed equally by both countries to Dassault Aviation and Airbus to start designing a next-generation combat air system for use from 2040.

Mr Hoke said there were discussions about Spain joining the Franco-German programme, but the Brexit negotiations would be decisive in determining any cooperation with Britain.

He said: "In Britain's case, we have to wait to see if there will be a hard Brexit.That would be fatal for the cooperation."

Brexit latest: The UK is due to leave the EU on March 29 (Image: PA )

8.09am update: 'Time for Tory Brexiteers to reflect on whether they're in right party'

Patrick O'Flynn has reacted to reports that have emerged after May's Brexit negotiator was overheard discussing Brexit in a Brussels bar.

The Ukip MEP posted on Twitter: "The idea that Olly Robbins is some svengali completing duping a well-intentioned PM is just a Tory contortion aimed at avoiding the awful reality: he is implementing her instructions.

"Time nearing for genuine Tory Brexiteer MPs to reflect on whether they are in the right party."

The former Ukip leader said that he was aware that some people believed that Theresa May is warming to the idea of a WTO Brexit despite the Government claiming that they are firmly against it.

During his LBC show, Mr Farage also played an audio recording of the complaints from Labour leader Jeremy Corbyn insisting that Ms May was “running down the clock to blackmail” MPs into supporting her deal.